Trade talks between the U.S. and Canada over tariffs on Canadian steel, aluminum, and automobiles appear to be gaining momentum, with signs that President Trump may be more open to reaching a deal.
The details: After months of stalled negotiations, Canadian Prime Minister Mark Carney said talks had seen "a slight intensification," with sources suggesting an agreement could be reached soon, according to Reuters.
"If it happens, it'll happen fast. But my sense is it'll be a narrowed deal, if it even happens,” said one Canadian source.
Another Canadian source believes a deal on Section 232 tariffs, which cover up to a 50% tariff on Canadian steel and a 25% tariff on autos, is likely before the midterm elections.
What they’re saying: "To the extent any progress has been made, it's because the US is coming closer to our position," Carney told reporters, but did not provide details, per Reuters.
The car business moves fast. Stay ahead.
The most important insights from automotive retail, delivered to your inbox daily.
Join 74,000 others now, it's free:
Why it matters: A potential agreement on automotive and metals tariffs could ease cost pressures on vehicles and parts moving between the U.S. and Canada, potentially improving vehicle affordability, inventory availability, and pricing stability for dealers, depending on the terms of any deal.
Between the lines: Trump and Carney have both expressed optimism about reaching a mutually beneficial trade agreement, according to sources, with recent developments suggesting greater openness to a deal.
At a rally Sunday, Trump predicted the trade dispute would be resolved “soon.”
On Friday, Trump signed an order removing 50% tariffs on certain Canadian agricultural and forestry products.
Trump has previously said he would raise the tariffs on steel and auto imports from Canada to 50% on January 1, 2027, with Canada enacting retaliatory duties amid trade disagreements between the two countries.
Bottom line: Renewed momentum in U.S.-Canada trade negotiations raises the possibility of relief from automotive tariffs that have added uncertainty to North American vehicle production, pricing, and dealer operations, though the scope and timing of any agreement remain uncertain.
A quick word from our partner
The $2,000 question: Which VIN is about to cost you gross?
Every VIN carries its own level of risk, and the sooner you recognize it, the more options you have to protect gross.
Lotlinx helps dealers uncover hidden inventory risk, prioritize the vehicles that need attention, and make more informed decisions before opportunities are lost.
Get ahead of the curve with VIN-level inventory intelligence.
